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PelaStar: Revolutionizing Floating Offshore Wind with Tension Leg Platforms

We talk with Ben Ackers, CEO of PelaStar, a company revolutionizing the industry with their tension leg platform design. PelaStar’s innovative technology provides stability for large wind turbines in deep water conditions, paving the way for cost-effective and efficient floating wind farms at scale. Visit https://pelastar.com/ for more info!

Sign up now for Uptime Tech News, our weekly email update on all things wind technology. This episode is sponsored by Weather Guard Lightning Tech. Learn more about Weather Guard’s StrikeTape Wind Turbine LPS retrofit. Follow the show on Facebook, YouTube, Twitter, Linkedin and visit Weather Guard on the web. And subscribe to Rosemary Barnes’ YouTube channel here. Have a question we can answer on the show? Email us!

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Allen Hall: Welcome to the special edition of the Uptime Wind Energy Podcast. I’m your host, Allen Hall, along with my co host, Joel Saxum. With the increasing demand for clean energy, offshore wind has become a crucial component in the global energy mix. However, many of the world’s best wind resources are located in deep waters where traditional fixed bottom foundations are not feasible.

And this is where PelaStar comes in. PelaStar is changing the floating offshore wind industry with their 10 leg platform design, which provides stability for large wind turbines in deep water conditions. Our guest today is Ben Ackers Chief Executive Officer at PelaStar. Ben brings a wealth of experience in the maritime industry to lead PelaStar’s efforts in making floating offshore wind a reality on a large scale.

Ben, welcome to the show. Thanks for having me. There’s a lot to talk about because with the recent auctions or the outlines of some offshore wind sites off the coast of Maine, and then obviously off the coast of California, floating wind is going to be huge in the United States, and it’s already becoming something of an item over in Europe.

You at PelaStar have been trying to answer some of the problems that we have with floating offshore wind and maybe you can just give us a little bit of background on PelaStar and what you’re working on right now.

Ben Ackers: Absolutely. First of all, PelaStar is, as you said, a tension leg platform which sets it apart from a lot of the platform technologies that you’ll see that have been deployed in demonstration and pilot projects. We’re really the next generation of technology that the industry needs to bring down the cost of energy for utility scale floating wind farms. We started developing PelaStar around 2009. The idea comes out of our parent company, Glosten, which is a naval architecture, marine engineering consulting firm headquartered in Seattle.

We’ve been around for over 65 years. And as our engineers were looking at the challenge of how do we put turbines offshore? We evaluated the different archetypes of the time. Semi submersible spars. And ultimately landed on tension leg platform is what we thought would be the best way to bring down the price of energy in the long run by developing platforms that have the lowest mass and the least amount of motion to drive down capex and operating costs.

Joel Saxum: So a quick question then there, we’ll dive right into it is you highlighted what you believe the Or what in, it’s physics, right? But what the tension leg platform has advantages over some of the other technologies that are out there, because like we, we talked about a little bit off air there’s a lot of options and ideas and demonstrators and stuff, but nobody has really taken that the front runner, the pole position in the race for what’s going to be built at scale in offshore floating.

So that’s The tension leg platform idea. What are the advantages of it over some of the others?

Ben Ackers: Principally, the classic advantages of a tension leg platform are that you can design a platform, a hull with the lowest mass of any of the systems because we’re not using the platform itself to provide stability to the turbine.

We simply need less mass. steel or as others might use concrete to provide that stability. And then we’re stabilizing the platform with tendons that are vertically stiff so that we have very little vertical motion and very little rotation of the system because it’s basically a rid, effectively a rigid structure in the vertical direction.

Now it does, it is soft in the horizontal direction, so there is some movement back and forth. But ultimately. By restraining that motion, we provide the turbine with an ideal environment for operation. So we keep motions down low enough so that turbine is producing power and with an efficiency equivalent to if you’d put that turbine on a monopile.

Joel Saxum: That that’s hugely important, right? Because we’re, you mentioned CapEx in, a couple of minutes ago, but OpEx, because Allen and I, we were always talking, we’re all engineers at heart and thinking, you got this turbine up there and now you’ve introduced a few more degrees of freedom with some of the floaters, right?

We’re talking Highwind Scotland and stuff like that, where now you used to have the monopile and you have a little bit of movement in it, but now you have this and all kinds of rotation and all those things. So you’re actually it’s possible in my mind that you guys are taking out some of the future O& M costs by possibly saving on bearings or rotating equipment by lowering some of that movement.

Ben Ackers: That’s absolutely what we’ll leave, but it goes beyond just reducing wear and tear on the turbine, which is obviously really important, but it’s also about accessibility and workability, right? Because in the conditions in which we’re maintaining offshore wind turbines today even in shallow water, where we’re using SOVs with walk to work gangways, CTVs, daughter craft to board the platforms, our platform is not moving.

And with our central column design, we present as a monopile. So you just translate all of those things that have already been matured in offshore wind today. And we can use those same systems, same procedures, same equipment to get people on and off the platform. Whereas other platforms that have more motion, that becomes a greater challenge.

So we’re either those platforms are, you’re either going to have to limit. The times that you can actually access the platform because of that motion, or you need to build more robust equipment to deal with the relative motions between the platform itself and the vessels you’re using to access it.

And that’s all going to cost money. And then once you get people on the platform if the platform’s moving, they can simply just get less done. They’re less efficient versus being on a stable platform to get their work done.

Allen Hall: So the basic PelaStar design I’ve seen on your website, and your website is fantastic by the way, people should go there, check it out, just go to PelaStar, I think, PelaStar. com, and you can see all the details there’s basically a monopile type tower, and there’s five steel legs coming off to the side, like spider, and then there’s tension lines going all the way down to the bottom of the ocean. It’s that simple. And the one of the unique features I thought was the ability to transfer the components to the assembly site, like everything can be barged up.

So you don’t have, you can make the system pretty much anywhere, put it on a ship, haul it to the site and assemble it right at the coast line, I assume at a dock and then just tug it out to where you need to be. So you’ve thought about this from a lot of different aspects. It’s really simple. But it does a very difficult task at the same time.

There’s always that fine line. Where’s all the magic in all this? Is, there’s always that real, that piece that makes it all tie together. Is it the tension lines? Is it the anchors that make all this possible?

Ben Ackers: First of all, simplicity is The the cornerstone of our design philosophy that in order to take advantage of the TLP, this low mass structure, our goal is to leave as little complexity in the water as possible.

And a lot of times people will say, it looks too simple. There’s gotta be, there’s gotta be something more to it. And there is a lot to it. So first of all, there, there are so many factors to consider in design that you already know how hard it is to design for turbines, either even on land or Fixed offshore turbines the interaction with the environment and the complexity of the turbine, its loads, the wind loads, the control system, all of that requires a lot of work and a lot of fine tuning.

And you can’t just go to a clean sheet of paper, draw a platform and see if that works. It, it takes a lot of iteration, a lot of optimization to bring this all together. Now there’s certainly complexities to address a platform like PelaStar that’s designed for excellent operation and low construction cost is one that is also harder to install.

And so our some of where that secret sauce is, how do we get that platform that when the, those arms go underwater. It loses stability. How do we get it installed? So we’ve developed an installation system called crawl down installation where we float the platform out to the site. And then we deploy tendons with the platform and those tendons are extra long, longer than they have to be.

So that we can grab onto those with tools we call jacking tools and actually pull the platform down to its installed draft. And then we can remove those excess lengths of the tendon, remove all the special tooling that is that, that is complex, get that off the platform so it doesn’t stay at sea.

So we don’t have to buy 500 copies of that equipment, take it to the next platform. reuse it for installation. But I, you asked what about the tendons? The tendons are also incredibly important. If you were to have just carbon copied oil and gas technology into offshore wind, we’d all be using tendons that were either steel bar or steel pipe.

And while that works great in oil and gas when you’re deploying one platform and you can wait a long time pipe is hard to deploy. And so we looked very early on, we decided that we wanted to pursue synthetic fiber tendons. The reason being that they’re far easier to deploy. Literally you have them on a spool and you unspool them into the water.

And they have Excellent performance properties. We actually get damping out of the synthetic fibers that you don’t get in a steel tendon and that improves system performance, reduces fatigue loads, makes the controller easier to design and they’re very cost effective. It’s required a lot of new technology development.

And that’s something we’ve been working on with our partners, FiberMax and Dyneema for over a decade now to get the performance that we’re targeting and the technology qualified so we can deploy on real platforms.

Joel Saxum: So this is where I want to make sure that we don’t miss this because I made a mistake a few episodes ago, talking about the depths.

So I’m not going to make this mistake again. So we want to, I want you to be clear, Ben, on where you guys can install. And if you do have some limitations if there’s certain soil subsurface you can’t anchor into or basically if you can do anything and what, Depths and what this looks like, right?

Ben Ackers: We actually have a great range of site conditions that we can install. And I would say in terms of bottom conditions really the only difficult substrate would be a mud. And you can use a suction pile anchors in those conditions. It’s a, it’s already been done by oil and gas, but it is pretty expensive.

So we’d like to see our preferred seabed would be a sand gravel clay mixture. We have excellent cost effective anchor options there, but also if you start to introduce hard rock seabeds with either some overburden or just clear rock, there are good anchor solutions for that too. So that covers most of the seabed conditions that we’re going to find.

Now as far as depth goes we actually can deliver cost effective solutions for modern turbines in the 15 range down to about 70 meter water depth. And that is, that’s it. On the shallow end of a lot of people’s expectations. We’ve worked hard to optimize the design to make that happen.

But actually we’re finding that that’s a pretty compelling case to developers who actually, who have a hard time getting some of these immersibles even to work in those depths, because it’s actually very challenging to design catenary and top mooring systems that work in that depth range as well.

Yeah. That’s shallow. Yeah. Yeah. Then on the deep end as you get deeper we do get into arguably a soft sweet spot in the a hundred to 300 meter range. In terms of overall cost performance, but we can keep going from there. It’s just a matter of lengthening tendons in our system.

So we’re working closely right now, focused on the water depths that we’re going to find in the California lease areas between 750 and 1300 meters. That 1300 meter is going to be a pretty much a hard cutoff in the U S for some time now based on what Boehm is going to cite for lease areas And so we’re working on solutions there.

There are a lot of technical challenge going that deep. However, oil and gas has conquered the, this depth territory. It’s not a technical feasibility issue. It’s a techno economic issue. How do we produce the most cost effective mooring solutions when you have to simply buy more tendon? And that’s an area of That’s our primary area of research and development focus right now is how best to do that cost effectively and what kind of design trade offs are we going to make to make what we call ultra deep water more economically feasible.

Allen Hall: Does the tendons. Are there tendon changes based on the water depth? I know Dyneema is a magical material. We use it. I’m an electrical engineer and we use it for electrical things. It has great electrical properties, by the way, but also has wonderful mechanical properties. You see it in sailing all the time.

Are there any design, changes that are relative to where the wind turbine is going to be installed?

Ben Ackers: I would say that’s really only a function of depth. We we’ve Dyneema as our core load bearing fiber works great from that 70 meters out through a few hundred meters. As we get into ultra deep water, it’s not I know we have to ask ourselves, this is a a very high performance fiber and you do pay for that performance and you need to ask yourself if you need to pay for that performance over the length of the entire tendon.

We always find value of having that those properties somewhere in what I’ll call the tendon stack, but it’s not clear that we need that for the whole length. So we might be looking at other materials through the tendon stack for a more efficient tendon design.

Joel Saxum: Yeah, so I’m thinking I’m on the construction side again, because now we’re talking about differences in length and differences in materials in the tendon stacks and going back to what you said, where we can, this thing can be built case side and then basically brought to site rolled over or rolled over, but install the onsite.

So if you were to say, I know that the water depth thing is a little bit different there, but if you were to say, giving equal, A monopile installation versus this installation with the PelaStar system. Time wise, is it half the time to install PelaStar? Is it double the time to install PelaStar if you were to put them on site?

Ben Ackers: That’s interesting because we don’t do a lot of direct comparisons with the timeframe of fixed fixed pile installation. But I can tell you that we can typically get anchors installed in it, it does depend on the anchor type in the seabed conditions, but that, that operation we’re focusing on anchors that are being specifically developed for floating offshore wind. So we’re not using a lot of the traditional anchor types that are technically feasible, but are quite expensive. Some of the innovative anchor developers are using their own proprietary subsea installation. methods that decouple installation from vessels that drives down the vessel size we need for installation.

And then they’re using Subsea Robotics to automate the installation process. So we can get a, an anchor spread of our five anchors installed in 24 hours. And then When we bring the platform out, it takes a couple of days to get the tendons deployed, hooked up to the platform with the platform crawled down and the cable connected.

So that’s about a three day evolution offshore.

Joel Saxum: That’s cruising. So immediately comes to mind. This is from my oil and gas background. The company subsea micropiles. And the cellular robotics team that’s just up the street from you in Burnaby B. C. that builds that robot. It’s, if you haven’t ever seen this thing before, I have an offshore world, it’s really cool.

It’s it started life as a geotechnical, drilling, seafloor geotechnical drilling rig. So instead of having to do geotechnical from a boat, you put this thing over, it’s an ROV, it goes to the bottom and it auto, it will, can do CPT coring and in all kinds of things. But now they’ve adopted it. Subsea micropiles has adopted it to actually do in not even in situ tests, but actually geotechnical drilling tests.

And then at the same time, they can install the subsea micropiles in the subsurface, drill them down, and then they hook them up as anchors, leave a buoy on them, move on to the next one. And then you guys can come right behind them and just hook up to the anchors. That’s fricking slick, man.

Ben Ackers: Exactly. And their anchor is good for a lot of rocky seabed conditions.

There are for the softer sediments we’re we work closely with a company called Triton Anchor in Massachusetts, and they’re developing a helical group pile system that is excellent actually. And then Schottel Maritime Technologies also has a groutless mechanical toggle rock anchor system, very similar to subsea micropiles, but they don’t need to grout, but then they need a harder rock material for their system.

Yeah, mostly we’re looking at grouped anchor solutions to get away from the heavy drilling that you would expect for a more classical rock anchor.

Joel Saxum: Another question for installation and O and M the in, in farm collection, power cables, and the main export lines and stuff like that. So now the main export lines, you’re going to have.

A little bit of a navigation to do to make sure that of course the anchors and stuff are not in the same pathways. But what is the hookup for comms and power, import, export, all that stuff look like with the PelaStar platform?

Ben Ackers: It looks like a lot of other platforms. The fact is that with our lower motion.

It’s actually a little bit easier to design the dynamic cable that connects the platform to the inner array cables just because we’re not moving that much, it’s straightforward. One cable with all the export power and data that cable is generally prelaid on the seabed a couple of days before we come out with the platform.

And then we send once the platform is installed and locked off on the tendons, we send down a messenger line through an I tube that goes up the center column of the platform. An ROV makes the connection to that dynamic cable. And then we pull that cable up through. Our eye tube a bend stiffener will lock itself off at the base of the platform and then the the cable will come up and we’re looking at some kind of cool, innovative new systems that they will auto latch in place And we can do that entire operation without putting anybody on the platform.

And then but with it held in place temporarily, then we can get all of our temporary installation equipment off the vessel and wait then for an SOV to come out with a crew that actually secures the final hang off joint and terminates the cable into the switchboard.

Allen Hall: PelaStar was invited to participate with the Department of Energy in the Floating Offshore Wind Readiness prize and it, there was a, that’s been going on for about a year, I think, or so. What, where is that at right now? And what’s the next phase of that?

Ben Ackers: FLOWin is a three phase competition. The first phase was completed a little bit over a year ago. And in phase one, there were 43 teams all led by platform technology that competed to Demonstrate to the Department of Energy that we had technologies that were mature enough to justify moving on to the next step of industrialization and planning for cereal production.

So we completed our submissions for phase one in January of 2023. And of those 43 teams nine were awarded phase one prizes and we were among one of those 19 among those nine teams. So that came with a cash prize and a voucher to get some work out of National Labs as well. And then, but what it really brought with it was an invitation to participate in the phase two round.

We completed our submission for phase two. And on March 1st, so just very recently. And now we’re all waiting patiently to hear the results. What I’m expecting to hear those in mid May, I think, and we’re, we expect five teams to be awarded phase two prizes. And what we had to do in phase two was to show that we have a, that we are developing real plans with real suppliers to manufacture these platforms at scale, at the pace of one a week to deploy gigawatt scale farms in one to two years on a regular pace, one a week.

That’s a lot to ask. It’s actually one of the, I think our biggest takeaways from really digging into this in phase one and looking at our production throughput from the steel showing up at a fabrication facility to locking off the platform on its tendons, looking at that entire chain we actually found that it was pretty achievable to get to that level as long as you have a fabrication facility that is built around hitting that production target. And we were able to do that working with a partner here Pacific Northwest Everett Floating Structures that has ambitions to be one of those fabricators. And with some help from some European industrial engineering companies to design a manufacturing facility to with. with two assembly lines essentially to fabricate all of the modules we need to assemble a full platform and do that at a rate of one a week. And then we, and then as you were commenting earlier the general plan is that we develop those facilities in our target regions, whether they be U. S.

West Coast, U. S. East Coast, Scotland, Eastern Australia, and then then we ship those modules to an assembly and integration facility that would be local to the wind farm itself. And there we can complete final hull assembly and integrate the platform with the tower and the turbine. And we had to also end up with two assembly lines at that facility to hit that one a week target.

Allen Hall: Okay. That’s impressive. So what, when can we expect to see a Palastar project? platform in the water probably off California first. I’d assume that’d be the first place to go.

Ben Ackers: We’d like that to happen. We’d like to see something like a pilot project, maybe proceed to these utility scale deployments and see that maybe something like 2028 with any luck, and then then we would start seeing the real deployments probably in the 2032 to 2034 timeline.

But hopefully we’ll see PelaStars popping up before then in other parts of the world.

Allen Hall: See, that’s a realistic timeline, Joel. That’s one thing that we don’t get a lot of at Offshore Wind is a reasonable amount of time because there isn’t a lot of infrastructure that needs to be built up before you can do one a week.

It takes a little time, yeah.

Ben Ackers: And a lot of money, right? And workforce training. training the men and women that we’re going to need to build and operate these platforms is a huge heavy lift in addition to the investment in these facilities.

Joel Saxum: What I’m hearing here is that you guys cause we’ve been talking with We talk with everybody in the industry, right?

And floating offshore wind, it’s at such a early stage in most places. I’m over here in Bilbao, right? We’re right on the coast and there’s a couple of demonstrators out in the water here, some people taking tours to them on the show floor this week I saw a couple of different types of platforms, but it just doesn’t seem like.

Anybody’s as far along with as much support and as much proper planning and engineering complete as you guys are from this conversation we’re having right here.

Ben Ackers: Indeed. There are a lot, there’s a lot of competition out there. We often joke every year, I feel like we had another 20 concepts that people are developing with.

Let’s say there’s about 120 out there and we’ll say, there’s probably 30 real competitors and there are definitely, obviously platforms that are already out in the water that are competitors. have successfully deployed. So I don’t want to take away from the, from their engineering accomplishments they’re great.

And they’re and a few of them are doing the same thing, planning through this whole production throughput and serial production plan. They know that’s, what’s important to, because the reality is as good as our technology is, if we can’t do, if we can’t deliver it. developers can’t buy it.

So certainly there is an upper echelon of technologies that are carrying things through this far because if They don’t have a product to sell. But I appreciate the head nod. It’s been a lot of hard work and we see the importance of all of this.

Allen Hall: Obviously, PelaStar is doing a lot of wonderful things.

How do people connect with PelaStar? How do they see this Tension Lake platform? How do they connect with you?

Ben Ackers: They can give me a call, send me an email. I’ll be in Sacramento in the middle of May and that’s actually around when we expect DOE to announce that phase two prize winners.

And yeah, so send me an email. Happy to talk.

Allen Hall: And this has been fantastic. We have to stay in touch as this effort grows and it would be great to see In California and close to me in Maine at some point and yeah, Palastar is going to be helping lead that way. So I really appreciate you being on the program.

I’ve learned a ton. Thanks so much.

Ben Ackers: You bet. Thanks for having me.

https://weatherguardwind.com/pelastar-floating-tension-leg-platform/

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Trump Campaigns for the Nobel Peace Prize

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At left are a few good reasons not to shop from Amazon.

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Vineyard Wind’s $69.50 PPA, Two Offshore Lease Exits

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Vineyard Wind’s $69.50 PPA, Two Offshore Lease Exits

Rosemary reports back on her visit to multiple Chinese renewable energy companies, Vineyard Wind activates a $69.50/MWh PPA with Massachusetts utilities, and Bronze Age jewelry halts a German wind project.

Sign up now for Uptime Tech News, our weekly newsletter on all things wind technology. This episode is sponsored by Weather Guard Lightning Tech. Learn more about Weather Guard’s StrikeTape Wind Turbine LPS retrofit. Follow the show on YouTube, Linkedin and visit Weather Guard on the web. And subscribe to Rosemary’s “Engineering with Rosie” YouTube channel here. Have a question we can answer on the show? Email us!

[00:00:00] The Uptime Wind Energy Podcast brought to you by Strike Tape protecting thousands of wind turbines from lightning damage worldwide. Visit strike tape.com and now your hosts.

Allen Hall 2025: Welcome to the Uptime Wind Energy Podcast. I’m your host, Allen Hall. I’m here with Yolanda Padron in Austin, Texas, who is back from the massive wedding event. Everybody’s super happy about that, and Rosemary Barnes had her own adventures. She just got back from China and Rosemary. You visited a a lot of different places inside of China.

Saw some cool factories. What all happened?

Rosemary Barnes: Yeah, it was really cool. I went over for an influencer event. So if you are maybe, you know, in the middle of your career, not, not particularly attractive or anything you might have thought influencer was ruled out for you as a career. No one, no one needs engineering influencers in their [00:01:00] forties.

It’s incorrect. It turns out that’s, that’s where, that’s where I, I found myself. It was pretty cool. I, I did get the red carpet rolled out for me. Many gifts. I had to buy a second bag to bring home the gifts, and when I say I had to buy a second bag, I had to mention. Oh, I have so many gifts, I’m gonna need another bag.

And then there was a new bag presented to me about half an hour later. But, so yeah, what did I do? I got to, um, as I was over there for a Sun Grow event. Huge, huge event. They, um, it’s for, it’s for their staff a lot, but it’s also, they also bring over partners. They also bring over international experts to talk about topics that are relevant to them.

Yeah. They gave everybody factory tours in, um, yeah, in, in shifts. Um, I got to see a module assembly factory, so where they take cells, which are like, I don’t know, the size of a small cereal box, um, and assemble them into a whole module. Then the warehouse, warehouse was [00:02:00] gigantic. It, um, was, yeah, 1.8 gigawatt hours worth of cells that couldn’t hold in that one building.

They’re totally obsessed with fire safety there in everything related to batterie, like in the design of the product, but also in, in the warehouse. And they do, yeah, fire drills all the, all the time. Some of them quite big and impressive. Um, I saw inverter manufacturing facility that was really cool.

Heaps of robots. Sw incredibly fast. Saw a test facility.

Allen Hall 2025: So was most of the manufacturing, robotics, or humans?

Rosemary Barnes: Yeah. So at the factory it was like anything that needed to be done really fast or with really good quality was done by robots. So they had, um, you know, pick and place machines putting in. Um, you know, components in the circuit board, like just insane, insane rate.

I’m sure it’s quite, quite normal, but, um, just very fast. Everything lined up in a row. Most of their quality control is done by robots. Um, so it does well it’s done by ai, I should say. [00:03:00] Taking photos of, of things and then, um, AI’s interpreting that. Repairs, I think were done by humans. There were humans doing, um, like custom components as well.

Like not every product is exactly the same. So the custom stuff was done by humans.

Allen H: So that’s the Sun Grove facility, right? You, but you went to a couple of different places within China?

Rosemary Barnes: Yeah, I went to another, a factory, a solar panel, a factory, um, from Longie. That was really cool too. I got to see a bit more probably of the, um, interesting, interesting stuff there, like, uh, a bit more.

Um, yeah, I don’t, I dunno, processes that aren’t, aren’t so obvious. Not just assembly, but um, you know, like printing on, um, bus bars and, you know, all of the different connections and yeah, it was a bit, a bit more to it in what I saw. Um, so that was, but it, it’s the same, you know, as humans are only involved when it’s a little bit out of the.

Norm or, um, where they’re doing repairs, actual actually re [00:04:00]repairing. You know, the robots or the AI is identifying which components don’t meet the standard and then they’ll go somewhere where a human will come and, um, fix them.

Allen H: Being the engineer there. Did you notice where the robots are made? Was everything made in China that was inside the factory or were they bringing in outside?

Technology.

Rosemary Barnes: I didn’t think to look for that, but I would assume that it was Chinese made, also

Allen H: all built in country

Rosemary Barnes: 20 years ago that wouldn’t have been the case, but I think that China has had a long, a long time to, to learn that. Again, it’s not like, it’s not, it’s not rocket science. These are, these are pick and place machines, you know, like I remember working on a project very early in my career, so.

Literally 20 years ago, um, I was working with pick and place machines. It’s the same, it’s the same thing. Um, some of them are bigger ’cause they’re, you know, hauling whole, um, battery packs around. It’s just the, um, the way that it’s set up, but then also the scale that they can achieve. You just, you can’t make things that cheap if you don’t have the [00:05:00] scale to utilize everything.

A hundred percent. Like I said, wind turbine towers is a really good example. ’cause anyone, any steel fabricating

Allen H: shop

Rosemary Barnes: could make a wind turbine tower. Right? They, they could, they could do that. You know, the Chinese, um, wind turbine tower factories have the exact right machine. They don’t have a welder that they also use for welding bits of bridges or whatever.

Uh, they have the one that does the exact kind of world that they need, um, for the tower. They, you know, they do that precisely. Robotically, uh, exactly the same. And, you know, a, a tower section comes on, they weld it, it moves off to the next thing, and then a new one comes on. They’re not trying to move things around to then do another weld in the same machine.

You know, like they’re, um, but the exact right. Super expensive machine for the job costs a whole bunch to set up a factory. And then you need to be making multiple towers every single day out of that factory to be able to recoup on your cost. And so that is [00:06:00] the. The, um, bar that is just incredibly hard slash impossible for, um, other countries to clear.

Allen H: Can I ask you about that? Because I was watching a YouTube video about Tesla early on Tesla, where they wanted to bring in a lot of robotics to make vehicles and that they felt like that was the wrong thing to do. In fact, they, they, they kinda locked robots in and realized that this is not the right way to do it.

We need to change the whole process. It was a big deal to kind of pull those. Specialized piece of equipment, robots out and to put something else in its place in that they learned, you know, the first time, instead of deciding on a process, putting it in place and then trying to turn it on, see if it works, was to sort of gradually do it.

But don’t bolt anything down. Don’t lock it in place such that it doesn’t feel like it’s permanent. So you engineer can think about removing it if it’s not working. But it sounds like this is sort of the opposite approach of. A highly specialized [00:07:00] machine set in place permanently to produce. Infinite amounts of this particular product, does that then restrict future changes and what they can make or, I, I, how do they see that?

Did, did you talk about that? Because I think that’s one of an interesting approaches.

Rosemary Barnes: I didn’t actually get as much chances I would’ve liked to speak to engineers. Um, I was talking mostly to salespeople and installers. Um, so they know a lot, but I couldn’t, um, like in the factory tours, I was asking questions.

Um. That kind of question and, and they could answer all, all that. Um, but outside of that, and I couldn’t record in the factory obviously. Um, but I did, I did take notes, but what I would say is that they would have a separate facility where they would be working out the details of new products and new manufacturing processes and testing them out thoroughly before they went and, you know, um, installed everything correctly.

But what I do hear is that, you know, especially with solar power. Maybe to [00:08:00] batteries to a lesser extent. You, you know, you like, you have these kind of waves of technology. Um, so you know, like everyone’s making whatever certain type of solar cell and then five years later, um, there’s a new more efficient configuration and everybody’s making that.

And I know that there are a lot of factories that kind of get scrapped. Um, and the way that China’s set up their, like, you know, their economy around all this sort of thing is set up is that it’s not that, like every company doesn’t succeed. Right. They SGO was a big exception because they’ve been going since 1997, I think it was.

It was started by a professor quid his job and hired a room across the, across the road from his old university and, you know, built his first inverter and, um, you know, ’cause he, he could see that. Uh, the grid was gonna have to change to incorporate all of the solar power that was coming, which to be honest, in 1997, that was like pretty, pretty farsighted.

That was not obvious to me when I started working in solar in mid two thousands. And it was not obvious to me that this was a winner.

Allen H: Well, has sun grow evolved then quite a bit? ’cause if you’re [00:09:00] saying that they’ve minimized the cost to produce any of their products by the use of robotics, they have been through an evolutionary process.

You didn’t see any of the previous generations of. Factories. You, you were just seeing the most modern factory that that’s actually producing parts today. So is that a, is that a, is that just a cost mindset that’s going on in China? Like, we’re just gonna produce the lowest cost thing as fast as we can, or is it a market penetration approach?

What are, what were, were the engineers in management saying about that?

Rosemary Barnes: I think there’s a few different aspects to that, like within China. So Sun Grow is the big company with a long track record and they’re not making the cheapest product out of China. So I think that they are still trying to make the cheapest product, but they’re not thinking about it just in the purchase price.

Right. They’re thinking more in terms of the long, long term. You know, they’ve been around for 30 years and probably expect to be around for another 30 years. They don’t wanna be having [00:10:00] recalls of their products and you know, like having to, um. Installers in particular are probably working with them because they know that they won’t have to go back and do rework and the support is good and all that sort of thing.

So they’re spending so much money on testing and you know, just getting everything exactly right. But I don’t think that that’s the only way that China is doing it. There’s, you know, dozens, probably hundreds of companies. Um. Doing similar stuff between Yeah, like solar panels and associated stuff like inverters and, and batteries.

So many companies and all of them won’t succeed. You know, sun Girls Facility in, I was in her and it’s huge, you know, it’s like a, a medium sized country town. Just their, um, their campus there, they’re not, they’re not scrapping that and moving to a new site, you know, they’re gonna be. Rejiggering and I would expect that, you know, like everything’s set up exactly the way it needs to be, but it’s not like gigantic machines.[00:11:00]

It’s not like setting up a wind turbine blade factory where it’s hard if you designed it for 40 meter blades, you can’t suddenly start making 120 meter blades. Like it’s, they will be able to be sliding machines in and out as they need to. Um, so I, I, yeah, I guess that it’s some, some flexibility. But not at the cost of making the product correctly.

Allen H: Did you see wind turbines while you were in China?

Rosemary Barnes: I, the only winter I saw, I actually, I saw, because I caught the train from Shanghai, I actually caught the fast train from Shanghai to, which is about, it depends which one you get between like an hour 40 or three hours if it stops everywhere. Um, and I did see a couple of wind turbines on the way there, out the window, just randomly like a wind turbine in the middle of a, a town.

Um, so that was a bit, a bit interesting. But then in the plane, on the way back, the plane from Shanghai to Hong Kong, I, at the window I saw a cooling tower of some sort. So either like a, yeah, some kind of thermal [00:12:00] power plant. And then. Around all around, well, wind turbines, so onshore wind turbines. So I don’t know.

Um, yeah, I, I don’t know the story behind that, but it’s also not a particularly windy area, right? Like most of the wind in China is, um, to the west where, uh, I wasn’t

Allen H: as wind energy professionals, staying informed is crucial, and let’s face it. That’s why the Uptime podcast recommends PES Wind Magazine. PES Wind offers a diverse range of in-depth articles and expert insights that dive into the most pressing issues facing our energy future.

Whether you’re an industry veteran or new to wind, PES Wind has the high quality content you need. Don’t miss out. Visit PS win.com today. So there are two stories out of the US at the minute that really paint a picture of the industry. It was just being pulled in opposite directions. The Department of Interior announced agreements to terminate two more.

Offshore wind leases, uh, [00:13:00] Bluepoint wind and Golden State wind have agreed to walk away from their projects. Global Infrastructure Partners, which is part of BlackRock, will invest up to $765 million in a liquified natural gas facility instead of developing blue point wind. Ah. And Golden State Wind will recover approximately $120 million in lease fees after redirecting investment to oil and gas projects along the Gulf Coast, and both companies say they will not pursue further offshore wind development in the United States.

Well, we’ll see how that plays out. Right? Meanwhile. In Massachusetts Vineyard Wind, which has been fighting with GE Renova recently has activated its long awaited power purchase agreement with three utilities. The contract set a fixed electricity price of drum roll please. [00:14:00] $69 and 50 cents per megawatt hour for the first year and a two and a half percent annual increase.

Uh, state officials say the agreements will save rate payers $1.4 billion over 20 years. So $69 and 50 cents per megawatt hour is a really low PPA price for offshore wind. A lot of the New York projects that. Renegotiated we’re somewhere in the realm of 120 to $130 a megawatt hour, and there’s been a lot of discussion in Congress about the, the usefulness of offshore wind.

It’s intermittent blahdi, blahdi, blah. Uh, but the, the big driver is what costs too much. In fact, it doesn’t cost too much. And because it’s consistent, particularly in the wintertime, uh, electricity prices in Massachusetts in the surrounding area are really high. ’cause of the demand and ’cause how cold it is that this offshore wind project, vineyard wind would be a huge rate saving.

And [00:15:00] actually the math works out the math. Math everybody. Do you think this is, when we go back five years from now, look back at this. This vineyard wind project really makes sense for Massachusetts.

Yolanda Padron: I think it really makes sense for Massachusetts. I’m really interested to know what the asset managers are thinking on the vineyard wind side, um, and if they’re scared at all to take this on.

I mean, it’s great and I’m sure they can absolutely deliver. Like generation I don’t think should be an issue. Um. I just don’t know. It’s, it sounds like they’re leaving a lot of money on the table.

Allen H: I would say so, yeah. But remember, the vineyard win was one of the early, uh, agreements made when things were, this is pre Ukraine war, pre Iran conflict on a lot of other, a lot of other things.

It was pre, so I remember at the time when this was going on that. P. PA prices were higher than obviously a lot of other [00:16:00] things. Onshore solar, onshore wind, it would, offshore is always more expensive, but I don’t remember $69 popping up anywhere in any filing that I remember seeing. So even if they had said $69 five years ago, I think that would’ve still been like, wow, that’s pretty good for an offshore wind project.

And now it looks fantastic for the state of Massachusetts

Yolanda Padron: because I know that there’s sometimes, and we’ve talked about this in the past, right? There are sometimes projects where, you know, you think you, you’ve got a really good price and you’re really excited about it, and then it goes into operation and then like a couple years down the road, prices increase quite a bit and it’s not the worst thing in the world.

But you do just kind of think a little bit like, I wish I could. Renegotiate this or you know, just to get, to get our team a bit of a better deal or to get a bit more money in operations and everything.

Allen H: Does this play into Vineyard wind claiming $850 [00:17:00] million in dispute with GE Renova that at $69 PPA, there’s not a lot of profit at the end of this and need to get the money out of GE Renova right now, and maybe why GE Renova wants to get out of this because they realize.

The conflict that is coming that they need to separate the, the themselves from this project. It’s, it’s very, as an asset manager, Yoland, as you have done this in the past, would you be concerned about the viability of the project going forward, or is all the upfront costs. Pretty much done in that operationally year to year.

It’s, it’s not that big of a deal.

Yolanda Padron: As an asset manager taking this on, I’d probably have started preparation on this project a lot earlier than other of my projects like I do. I know that usually there’s, you know, we’ve talked about the different teams, right, throughout the stages of the project until it goes into operations, [00:18:00] but.

And usually you don’t have a lot of time to prepare to, to make sure all of your i’s are dotted and t’s are crossed, um, by the time you take the project and operations from a commercial standpoint. But this project, I think would absolutely, like you, you would need to make sure that a lot of the, of the things that you’re, that might be issues for some of your projects like aren’t issues for this project.

Just to make sure at least the first few years you can. You can avoid a lot of, a lot of turmoil that the pricing and the disputes and the technical issues are gonna cause you, because I feel like it’s just, there’s, there’s just so many things that just keep this side, just keeps on getting hit, you know?

Allen H: Well, I, I guess the question is from my side, Yolanda, is obviously inflation, when this project started was pretty consistent, like one point half, 2%. It was very flat for a long time. And interest rates, if you remember when this project started, were very, very low. Almost [00:19:00] nonexistent, some interest rates.

Now that’s hugely different. How does a contract get set up where a vineyard can’t raise prices? It would just seem to me like you would have to tie some of the price increase to whatever the inflation rate is for the country, maybe even locally, so that if there were a, a war in Ukraine or some conflict in the Middle East.

That you, you would at least be able to, to generate some revenue out of this project because at some point it becomes untenable, right? You just can’t afford to operate it anymore. And,

Yolanda Padron: and I think, um, I, I haven’t, I obviously haven’t read the, the contracts themselves, but I know that there’s sometimes there, it’s pretty common for a PPA to have some sort of step up year by year.

And it’s usually, it can be tied to, um, the CPI for. Like the, the change in CPI for the year to year. So you’re [00:20:00] absolutely like, right, like maybe, I mean, hopefully they’re, they’re not just tied to the fixed 69 bucks per megawatt hour. Um, but, but yeah, to, to your point like that, that price increase could, could really save them.

Now that we’re, we’re talking the, the increase in, in inflation right now and foreseeable future,

Allen H: if you think about what electricity rates are up in the northeast. I think I was paying 30 cents a kilowatt hour, which is 300. Does that sound right? $300 a megawatt hour. Delivered at the house, something like that.

Right? So

Yolanda Padron: prices in the northeast are crazy to me,

Allen H: right? They’re like double what they are in North Carolina. Yeah.

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Yolanda Padron: you millions.

Allen H: Well, sometimes building a wind farm turns out more than expected construction workers at a 19 turbine wind project in lower Saxony Germany under Earth. What experts call the largest Bronze age Amber Horde ever found? The region, the very first scoop of an excavator brought up bronze and amber artifacts that stopped construction and brought archeologists back to the site.

Uh, the hoard has been dated between [00:22:00] 1500 and 1300 DCE and is believed to have belonged to at least three. Status women possibly buried as a religious offering. Now as we push further and further across Germany with wind turbines and solar panels for, for that matter, uh, we’re coming across older sites, uh, older pieces of ground that haven’t been touched in a long time and we’re, we’re gonna find more and more, uh, historically significant things buried in the soil.

What is the obligation? Of the constructor of this project and maybe across Europe. I, I would assume in the United States too, if we came across something that old and America’s just not that old to, to have anything of, of that kind of, um, maybe value or historically significant. What is the process here?

Rosemary Barnes: I assume that they’ve gotta stop, stop work. Um, yeah, that’s my, my understanding and I don’t think, do you have [00:23:00] grand designs in America?

Allen H: I don’t know what that is. Yes.

Rosemary Barnes: So missing out by not having that chat. It’s a TV show about people who are building houses or doing, um, ambitious renovations, and it just, it follows, it follows them.

You can learn a lot about project management or. The consequences if you decide that you don’t need to, project management isn’t a thing that you need to do. Um, anyway. I’m sure that in some of those ones I’ve seen they have had work stop because in their excavation they found a, um, yeah, some, some kind of relic, um, from the, from the past.

So based on that very well-credentialed experience that I have, I can confidently say that they would be stopping stopping work on that site. I mean, it’s so bad, bad for the developer, I guess, but it’s cool, right? That they’re, you know, uncovering, uh, new archeology and we can learn more about, you know, people that lived thousands of years ago.

Allen H: It, it does seem [00:24:00] like, obviously. Do push into places where humans have lived for thousands of years. We’re going to stumble across these things. Does that mean from a project standpoint, there’s, there’s some sort of financial consequence, like does the lower Saxony government contribute to the wind turbine fund to to pay the workers for a while?

’cause it seems like if they’re gonna do an archeological dig. That that’s gonna take months at a minimum, may, maybe not, but it usually, having watched these things go on it, it’s. It’s long.

Rosemary Barnes: But wouldn’t that be something that you’d have insurance for?

Allen H: Oh, maybe that’s it.

Rosemary Barnes: You know, it seems to me like an insurable, an insurable thing, like not so hard to, it would’ve affected plenty of other, like any project that involves excavation in Europe would come with a risk of, um, finding Yeah.

An archeological find. And having work stopped, I would assume.

Allen H: Yolanda, how does that work in the United States do, is there some insurance policy towards finding [00:25:00] a. Ancient burial ground and what happens to your project?

Yolanda Padron: I don’t know. I, um, the most I’ve heard has been, it’s just talking to like the government and like the local government and making sure that you have all your permits in place and making sure, you know, you might need to, to have certain studies so you know, you might not have to get rid of the whole wind farm or remove the hole wind farm, but at least a section.

Of it has to be displaced from what you originally had thought. I don’t know. I know it happens a lot in Mexico where you get a lot of changes to construction plans because you find historical artifacts or obviously not everybody does this, but like. Tales of construction workers who will like, find, they’re so jaded from finding historical artifacts that they just kind of like take and then dump them to the next plot over to not deal with it right now.

Not that it’s anything ethical, uh, or done by everybody, [00:26:00] uh, but it’s, but, but it’s a common occurrence, a relatively common occurrence.

Allen H: You would think it where a lot of wind turbines are in the United States, which is mostly Texas and kind of that. Midwest, uh, wind corridor that they would’ve stumbled across something somewhere.

But I did just a quick search. I really hadn’t found anything that there wasn’t like a Native American burial ground or something of that sort, which they previously knew. For the most part. It’s, so, it’s rare that, that you find something significant besides, well, maybe used some woolly mammoths tusks or something of that sort.

Uh, in the Midwest, it’s, it’s, so, it’s an odd thing, but is there a. A finder’s fee? Like do does the wind company get to take some of the proceeds of, of this? Trove of jewelry.

Rosemary Barnes: I, I would be highly surprised.

Allen H: Well, how does that work then? Rosemary?

Rosemary Barnes: I’d be highly surprised if that’s the case in Europe. I bet it would happen like that in America.

Allen H: Sounds like pirate bounty in a sense.

Rosemary Barnes: In, in Australia it wouldn’t be like that because [00:27:00]you, when you own land, you don’t actually. You, you own the right to do things from surface level and above, basically. I don’t know how excavation works. So you don’t generally have a a right to anything you find like that?

I mean, you shouldn’t either. It’s not, it’s not yours. It’s a, it belongs to the, I don’t know, the people that, that were buried. When you then to the, the land, like, I guess. The government in some way. I mean, in Australia it’s, um, like we don’t have so many archeological fines that you would find from digging.

I mean, it’s not that there’s none, but there’s not so many like that. But it is pretty common that, you know, there are special trees, um, you know, some old trees that predate, uh, white people arriving in Australia. And, um, you know, that have been used for, you know, like it might have a, a shield that’s been, um.

Carved out of it. Or, uh, hunting. Hunting things, ceremonial things, baskets, canoes, canoe like things, stuff like that. They call ’em a scar [00:28:00] tree ’cause they would cut it out of a living, living tree. And you know, so when you see a tree with those scars and that’s got, um, cultural significance. There’s also, you know, just trees that were, um.

That that was significant for cultural reasons and so you wouldn’t be able to cut down those trees if you were building any, doing any kind of development in Australia and a wind farm would be no different. I know that they are, there are guidelines for, if you do come across any kind of thing like that or you find any anything of cultural significance, then you have to report it and hopefully you don’t just move it onto the neighboring property.

Allen H: I know one of the things about watching, um. Some crazy Canadian shows is that. Uh, you have to have a Treasure Hunter’s license in Canada. So if you’re involved in that process, like you can’t dig, you can’t shovel things, only certain people can shovel. ’cause if they were to find something of value, you.

You’ll get taxed on it. So there’s just a lot of rules [00:29:00] about it. Even in Canada,

Rosemary Barnes: if I was an indigenous Australian and you know, some Europe person of European descent came and found some artifacts, uh, aboriginal. Artifacts. I would be pissed if they just took it and sold it. Like that’s just clearly inappropriate right.

To, to do that. So you, I don’t think it should be a free for all. If you find artifacts of cultural significance and you just, it’s, you find its keepers that, that doesn’t sound right to me at all.

Allen H: Can we talk about King Charles II’s visit to the United States for a brief moment?

Uh, he is a really good ambassador, just like, uh, the queen was forever. He’s, he does take it very seriously and the way that he interacted with the US delegation was remarkable at times in, in terms of knowing how to deal with somebody that there’s a war going on right now. So there’s a lot [00:30:00] happening in the United States that, uh, not only could it be.

Uh, respecting both sides of the UK and the United States’ position in a, in a number of different areas, but at the same time being humorous, trying to build bridges. Uh, king Charles, uh, had the scotch whiskey tariffs removed just by negotiating with President Trump, and sometimes that’s what it takes.

It’s a little bit of, uh. Being a good ambassador.

Allen H: Yeah. The very polished you would expect that. Right? But this is the first visit of. The king to the United States, I believe. ’cause he, he’s been obviously as a prince many, many, many times to the United States. [00:31:00]But this time as, as a, the representative of the country, the former representative or head of the country, which was unique.

I think he did a really good job. And I wish he, they would’ve talked about offshore wind. Maybe he could’ve calmed down the administration on offshore wind.

Rosemary Barnes: I bet that’s one of the, the goals. I mean, that’s an industry that’s important to. So

Allen H: I wonder if that happened actually. ’cause that’s not gonna be reported in, in the news, but how the UK is going on its own way in terms of electrification and I guarantee offshore wind had to come up it.

Although I have been not seen any article about it, I, I find it hard to believe that King Charles being the environmentalist that he is, and a proponent of offshore wind for a long time. Didn’t bring it up and try to mend some fences.

Rosemary Barnes: Maybe he’s playing the long game though. I mean, Trump is pretty, he’s transactional, but he also, you know, he has people that he really likes and you know, will act in their interests.

So maybe it’s enough to just be [00:32:00] really liked by Trump, and then that’s the smartest way you can go about it.

Allen H: Did you see the gift that King Charles presented to, uh, the US this past week?

It was a be from, uh, world War II submarine, which was the British, I dunno what the British called their submarines, but it was, the name of it was Trump. So they had the bell from. The submarine when it had been commissioned and they, they gave that to the United States, or give to the president. It goes to the United States.

The president doesn’t get to keep those things, but it was such a smart, it’s a great president. It’s such a smart gift, and somebody had to think about it and the king had to deliver it in a way that got rid of all the noise between the United States and the uk. Brought it back to, Hey, we have a lot in common [00:33:00] here.

We shouldn’t be bickering as much as we are. And I thought that was a really smart, tactful, sensible way to try to men some fences. That was really good. That wraps up another episode of the Uptime Wind Energy Podcast. If today’s discussion sparked any questions or ideas, we’d love to hear from you. Reach out to us on LinkedIn.

Don’t forget to subscribe, so you never miss this episode. And if you found value in today’s conversation, please leave us a review. It really helps other wind energy professionals discover the show. For Rosie and Yolanda, I’m Allen Hall and we with. See you’re here next week on the Uptime Wind Energy Podcast.

Vineyard Wind’s $69.50 PPA, Two Offshore Lease Exits

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